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What Is Fiscal Policy

Question 51

Multiple Choice

What is fiscal policy?


A) It is the government's approach to its own spending and taxation.
B) It is the use of interest rate policy by the central bank to stabilize an economy.
C) It is the total spending by all levels of government.
D) It is the central bank's approach to interest rate policy.
E) It is employed by governments only when the economy is experiencing a recessionary gap.

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